Samsung reportedly delays new semiconductor plant after losing Apple orders, sources say

“Samsung Electronics is likely to put off the construction of a new logic fabrication facility dubbed Line-17, due to the possibility of losing a portion of orders for Apple’s next-generation application chips, according to industry sources,” Josephine Lien and Jessie Shen report for DigiTimes.

“Samsung will no longer be the sole supplier of Apple-designed chips that power the iPhone and iPad devices, the sources indicate,” Lien and Shen report. “The anticipated drop in orders from Apple has prompted Samsung to consider slowing the pace of its logic-IC capacity expansion.”

Lien and Shen report, “TSMC with its 20nm process technology will likely secure its first chip orders from Apple, the sources believe. TSMC is scheduled to enter trial production on its 20nm process node in early 2013, the sources said.”

Read more in the full article here.

MacDailyNews Take: Hey, Samsung, was all of your thievery worth it?

Hopefully considerably more pain is in store for Samsung.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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    1. no, it doesn’t hurt really. apple is not the only which samsung do business. they expand to tons of companies in the world. you have no idea. plus, Samsung has many sectors. it’s not just electronics. do you even have knowledge on the company? if apple fall, there is no power back because it has only electronics sector. if iphone, pad fall, apple will be really over. but if Samsung fall electronics, it will still survive because many sectors in company will rebuild it again. but apple can’t. don’t be stupid.

      1. I think it does hurt–really. Why else would Samesung delay construction of the facility? On the other hand, you’re right that Samesung has many sectors. I’m a big fan of their commercial wind turbines. I can hardly wait ’till I can buy a 1 megawatt model at Best Buy. Come to think of it though, don’t all of Samesung’s sectors involve electronics?

        If Apple “fall,” it “power back” because “it too have many sector,” including software, media and streaming services.

        don’t be stupid.

    2. Samsung has two, separate, divisions. The consumer division, which manufactures and sells phones and tablets, etc, is going gangbusters but the components division, which has provided ram, displays, various components and Apple’s processors has already lost much of this business and has realised they will now lose the rest. This must hurt! The loss of Apple’s business has a knock-on effect into production costs for their own consumer equipment, raising their cost to manufacture as production numbers decline and their return on manufacturing assets slumps. Without Apple’s business, Samsung, as we see with the cancellation of this new plant, will find it harder to stay on the cutting edge as competitors use the huge revenue stream from Apple to invest in new manufacturing technology. Samsung is learning the hard way that biting the hand that feeds is not a good idea…

  1. Considering their profits from smartphone hardware and increased brand image (pathetic, but true), the thievery certainly was worth it, even if at the expense of reducing low margin fabrication.

    1. Nothing can make up for the loss of Apple’s business. Apple may not be number 1 in phones, but even at number 2 their market share is huge. If Samsung won ALL the remaining smartphone business, they would still be way behind. And in tablets, Apple is number 1. Together this is a body blow for the Koreans…

  2. As much as I want samdung to suffer, I don’t think this will do justice.

    They steal that much is obvious, but it is the courts that can do justice. Unfortunately yje courts are political and corrupt.

  3. hey, MDN. you make me annoying everyday because you talk nonsense. Samsung is better not to deal with rotten apple. they should stop supply all of parts included API, all of it. then how will apple suffer from supply again? Samsung is the biggest manufacturing, building parts in the world. so if you feel pain in the ass, why don’t apple just buy sharp or Foxconn to build their own? MDN, stop talking about nonsense. apple is over.

    1. hey edtard,

      Re: “you make me annoying everyday”.
      What- did your weekly paycheck from Shamdung just arrive is the reason you are resuming posting again, you fscking troll?
      Talk about annoying… ESAD.

  4. You are correct about some things. Samsung is diversified and they do supply parts for many different companies. Samsung is more like General Electric, they have their fingers in many different things. Diversification is always good whether it’s a company or an individual investing. So this won’t put Samsung in the poorhouse by any means. And you’re correct, Apple is not as diversified. They are focused more narrowly on consumer electronics. I believe that is why Apple is trying very hard to expand into other things like the Apple ITV. Getting into movies and television could open up a whole new world and revenue stream for Apple. I sure hope they do it. Quickly. But I think that this will bite Samsung in the ass a little bit at least. And Apple has no choice anyway. They’re at war with Samsung so they have to leave. They’re not leaving necessarily to hurt Samsung. There are leaving out of necessity. They would have left two years ago but it takes a long time I’m certain to find a good alternative. But they will separate themselves completely from Samsung as soon as possible. And Samsung couldn’t cut Apple loose because there are little things called contracts. I’ll bet Tim Cook is burning the midnight oil trying to figure out a better way to manufacture future Apple products. Apparently Apple doesn’t want to own any manufacturing facilities. I’m certain they know best. It will be interesting to see what happens going forward with future generations of products. And I doubt that Apple “is over”. Have a nice day.

  5. But wait……… I heard it was Samsung who initiated ending the business arrangement. Why would they build a facility if they had plans to VOLUNTARILY reduce their production (and income)? I hope they really feel it when Apple completely removes them from the Approved Supplier Listing.

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